Did Microsoft royally flub its new console launch?

Microsoft this week announced not just one, but two new consoles in development. The firm unveiled the Xbox One S - a 4K-compatible, slimmed-down version of the Xbox One that's coming in August. But at the same time, the company also announced the Xbox One S's successor, a souped-up console that supports both 4K gaming and high-quality virtual reality, slated for holiday 2017.

All of this raises a critical question: Why would anyone who knows a better Xbox is coming out later buy an Xbox One S this August?

I asked Dave McCarthy, general manager of Xbox Services, that question - well, not quite so bluntly.

The new Microsoft Xbox One S console is announced during the Microsoft Xbox news conference at the E3 Gaming Conference. Photo / AFP

While not that informative on its face, McCarthy's answer hinted at a shift in the way consoles are developed and marketed. "That's hard to answer," he said. "Different people have different things that may appeal to them." Microsoft's watchword heading into the releases of its consoles, he said, is choice.

Choice is no revolutionary concept in the wider consumer tech world, but it would actually be kind of a big deal in the console market.

It used to be that companies dictated the full rhythm of when gamers bought consoles. Every five to seven years, the big hardware firms would come down from on high with new consoles and say, "Thou shalt all buy a new machine." You picked your allegiance - Microsoft, Sony, or Nintendo - and were set for the next several years.

With the advent of the Xbox One S coming just three years after its predecessor, Microsoft's "Project Scorpio" coming a year after that, and the mysterious but definitely forthcoming PlayStation Neo, it seems times are a changin' - and may be cutting the old cycle in half. Some say this points to a more smartphone-like cycle for consoles - though, maybe not every year.

The new Microsoft Xbox One S, console is announced during Microsoft Xbox news conference. Photo / AFP

McCarthy said that, while he's not sure that the firm will keep up quite the pace it's setting at this E3, the firm is starting to realize that consumer demand and technological advances are accelerating. As this mode of entertainment takes on new forms - mobile, virtual reality, augmented reality, streaming, social, multiplayer - consoles may have to become more iterative, less revolutionary and more responsive to trends. Companies can't just sit on their hands and build a super-console every few years anymore. If PCs can already support virtual reality headsets, for example, then console makers will have to answer. And fast.

As options go, the Xbox One S is an attractive one. Microsoft isn't actually letting reporters touch or use the console quite yet, but I did get a close look at it. The new console is 40 percent smaller than its predecessor, so it won't dominate a media stand as much. It's also slightly cheaper than the standard Xbox despite being a bit more powerful. At $300 rather than $350, it's edging down the market to perhaps draw more buyers who are on the fence.

Microsoft's E3 2016 Xbox event.

Fence-sitters are the ones who should consider the Xbox One S, or those looking to upgrade from the Xbox 360. Anyone who's fine with being a little behind the bleeding edge (and who will appreciate a more budget-friendly option) might opt for the new console. Those more interested in powerful gaming will have the more difficult decision of deciding whether to upgrade to the Scorpio or Neo to replace consoles they might have bought just three years ago to support more intense gaming experiences.

Microsoft's announcement was a success, said Ben Howard, vice president of programming for GameSpot. Sony got an early lead in the latest console wars, and Microsoft needed something fresh to help make up ground. And with games changing quickly, it makes sense to move faster. "But it's a risky proposition," he cautioned. "They [Microsoft and Sony] could alienate people who spent money on the previous consoles by bringing out another so soon."

People view the new Xbox One S on display at the Los Angeles Convention Center during the second day of 2016 Electronic Entertainment Expo (E3) annual video game conference. Photo / AFP

Keep in mind, too, that Microsoft, Sony and Nintendo aren't just competing with each other. They're also competing with a host of products from Apple, Amazon, Google and more that are trying to make all-in-one entertainment machines, such as the Apple TV.

Sure, gaming consoles may be on a far end of a spectrum of devices, but the cheaper, less powerful entertainment boxes have all touted a certain amount of casual gaming as a selling point.

"Hopefully, this shows that they can compete on the price - maybe even go below $200," Howard said. That, he said, would definitely help make the newer, more frequent consoles hold their own against an onslaught of competitors. "They're all competing for eyeballs," he said.

It could be a rocky transition to the new release pace. It may not work at all, really, as people continue to predict the death of the console as PC gaming sees a resurgence, and mobile gaming continues to grow like crazy. Microsoft is hedging its bets a bit, too, pouring a lot of investment into making sure that PC games work on the Xbox and vice versa. Microsoft even built its Cortana voice assistant - a main feature of Windows 10 - into the new Xbox software.

But it is clear that if consoles are going to survive and thrive, they have to shake things up a bit.